Hardware Design Engineer|EV Chargers | Motor Controller | DC DC Converter | BMS | EMC/EMI | Power Electronics
Is This the Beginning of the End for Germany’s Automotive Dominance? 😳 What happens when the world’s largest automotive supplier starts scaling back its most advanced technologies? Bosch just announced 5,500 job cuts globally, including 3,500 from its autonomous driving (AV) and advanced driver assistance (ADAS) divisions—once heralded as the future of the industry. Here’s what’s happening: 1. The Retrenchment ↳ Cutting its most advanced software and autonomous systems teams. ↳ A stark pivot away from leadership in high-tech automotive software. 2. The Causes ↳ Stagnating EV and AV adoption. ↳ Struggles to monetize advanced software solutions. ↳ Cheaper Chinese imports dominating global markets. 3. The Implications ↳ Signals failure in transitioning to software-first business models. ↳ Raises questions about Germany’s readiness for a software-driven mobility future. Bosch, once poised to lead in autonomous technologies, now appears to be stepping back. Is this a symptom of a larger issue for German automakers struggling to adapt to a software-first world? The Takeaway Bosch’s layoffs highlight the challenge of transitioning from hardware dominance to software leadership. What do you think—is this a temporary setback, or has Bosch missed its moment? And what about the rest of the Tier1s? Credits: Lukas Timm
Reminds me of the downfall of some world famous companies from other domains = Nokia (Finland based company), Blackberry (Canada), Microsoft mobile os and then Acquisitions like.... LinkedIn by Microsoft and much more. Volkswagen is already selling it's unit in China as per the news.
One reason for Bosch's losses could be from its exit from Russia. The geopolitical situation led to reduced revenues and disrupted operations from CIS countries. Combined with other reasons also.
The automotive industry is a manufacturing industry, primarily. That will never be a software driven or software defined whatever, that is just a hype. The software development in the automotive are important to optimise the design and manufacturing process first, and when embedded in a car the performance of the vehicle (product) A car nowadays is a 2 tons assembly of about 5000 parts made mainly of metals and plastics. About Volkswagen, we should not forget that they have been heavily “ransomed “ after the diesel gate… sorry fined. And don’t worry, Bosh will be Ok
I guess this is intentionally being posted to spread rumors. From my point of view, this is the second post by Sushant Verma, but none of the people mentioned have any relationship with The Great #BOSCH. Maybe it's just cleaning up scrap to gear up for the next level.
Transition from hardware to software is not the problem. IPhone, Pixel and now MI have developed own SoC. Dominance of Chinese engineering is the reason.
How can 3500 software people be effective and efficient? What were they all doing?
Cutting jobs does not always mean stepping back. Sometimes, smaller organization can can provide better results, especially during a transition. However, I am worried about whether European based companies can adapt fast enough and what it will mean for r&d in Europe.
This could indeed be a sign of bigger struggles for Germany’s automotive sector.
Are they shifting resources? They partner with WeRide and other big players. They are, themselves, huge in China. Are they really stepping back?
Product Management at Daimler Trucks🚚 | MBA student in Germany | background in Sales and Engineering Projects| Bridging Engineering, Sales & Business.
1wIn my opinion, this will not pose a very big problem for the German economy. Germany has already overcome much big challenges such as the hyperinflation of the 1920s, World War II, and 2008 global financial downturn. Germany has better industrial base, tech and skilled workforce. German Economy will find its way to prosper.